Brand heritage and consumer perceived value are two concepts which separately have received a growing interest among academics for quite some time. However both of them combined, hence consumers’ perception of the value of brand heritage is a relatively unexplored field of research. This study therefore intends to explore how consumers perceive the value of brand heritage of luxury fashion brands. To achieve this purpose, the study will investigate consumers’ perception of the value of brand heritage of four European luxury fashion brands – Burberry, Chanel, Gucci, and Louis Vuitton – which serve as illustrative/reference brands in this study. These four European luxury fashion brands are chosen as illustrative brands in this study based on the determination that heritage is a central part of their brands. Secondary data was collected through Internet based document analysis of the illustrative brands to determine whether these qualify as heritage brands. Furthermore, semi-structured interviews were conducted to collect primary data for the purpose to explore how consumers perceive the value of brand heritage of the illustrative brands. The findings of the study reveal that consumers perceive the value of the brand heritage of the illustrative brands because it serves as a source of credibility and trust between the consumers and the brands. There is a perception that the brands have managed to maintain a certain standard regarding quality and craftsmanship, and likewise delivered according to consumers’ expectations over time. Furthermore consumers perceive the value of the brand heritage of the illustrative brands since it contributes to a sense of belongingness and social acceptance. They value the identity and meaning of the illustrative brand, hence the perception that the brands have managed to persistently deliver according to their core values and promises over time. It provides the consumers with the opportunity to connect with the brands on a personal level and to create their own individual identities and lifestyles through the brands. All this, in combination with the perception of the brands as timeless and durable, that they inhabit a sense of credibility and trust, which in the long run may generate loyalty - they value that the brands are loyal to them - conclude how consumers perceive the value of the brand heritage of the illustrative brands.

Abstract A high level of customer perceived value is the key to customer loyalty and to the profitability of customers and companies. It is not enough to meet the customer's needs in order to win customer loyalty. Instead the aim for companies should be to try to delight customers. Customers are delighted when they feel that the product or service not only fulfils their needs and expectations, but also gives them unexpected additional value. Value has been studied widely and there are several different models and theories to describe customer perceived value. In the main, they tend to be too general or insufficient or they do not provide a useful guide for management practices. Therefore the aim of this thesis is to generate a theory for consumer perceived value which could be useful for managements trying to develop superior value so as to improve their customer loyalty. Pre-purchase consumer value was examined applying Grounded Theory methodology and by synthesizing the existing research results. The resulting theory from this synthesis consists of three main stages namely, gaining, sacrifice and purchase factors. The gaining stage has three sub elements: substance, reputation and interaction. All these sub-elements have the same four subcategories: emotional, social, functional and economical elements. What is novel about this research is its treatment of customer perceived value firstly, from the perspectives of the companies – based on three functionally different factors: substance, reputation and interaction – and secondly from the perspective of the customers based on the identified subjective outcomes (i.e. emotional, social, functional and economic factors). Based on this approach companies can develop products based on a better understanding of consumer perceived value.

No description available.